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Finishing up college, question about financing

I have an offer signed for a job, but don't start obviously until May next year after I graduate. It's a great salary, and I don't want to move quite yet so I'll commute from home. This is 180 miles round trip, hence why I am seriously wanting to purchase a Model 3 LR (for self-driving highway purposes mostly).

Tesla recently did NOT hit the Model 3 LR amidst the recent wave of price increases, but I feel that they might in then next 6 months (especially due to the EV tax credit bill on the table) Current estimated delivery date for the LR is December, but with Hertz ordering 100k or 200k Model 3's production is going to get wild. So, I'm thinking I need to order sooner rather than later to get the car before I start work. Problem is... how am I gonna get financed for an auto loan without the salary being "active" so to speak. Anyone know how Tesla financing or others would approach someone like me? I have no debt and credit score is as high as it can for an individual like me given the length I've possessed a credit card (only ~3 years I think). I believe my plan is to pay it off completely within the first year or two most likely.
 

jjrandorin

Moderator, Model 3, Tesla Energy Forums
Moderator
Nov 28, 2018
14,190
17,914
Riverside Co. CA
You dont have any income, nor does it sound like you have any credit history as it relates to car purchases. If you are going to buy now, you likely need a co-signer on your loan (someone with good credit history, a good credit score, and established income / residence.).

Note, if you are not familiar with that. That is not a decision anyone should take lightly, especially the co-signer. They are agreeing to pay for the car in case you cant, so they need to have the financial ability to do that (on top of their other current debts).

I dont see how you are getting financed by anyone otherwise, since you have no income. If you dont have anyone who can do that for you (or who is willing), then you will have to wait till you have verifiable income.

On the "wait till someone is willing" statement..... For my daughters car, I was more willing to buy the car and make payments on it myself than I was to co-sign on a loan for it. She asked me to co-sign on the loan, and my wife and I decided we would buy the car and make it a "graduation / congratulations on your first real job" present. I love and trust my daughter, but also do not believe in mixing family and debt, as that can cause "irreconcilable differences", should something go wrong.

TL ; DR

You will need a co-signer on your loan, or you will need to wait till you have income from your job, unless you have a lot of money currently in the bank.
 
You dont have any income, nor does it sound like you have any credit history as it relates to car purchases. If you are going to buy now, you likely need a co-signer on your loan (someone with good credit history, a good credit score, and established income / residence.).

Note, if you are not familiar with that. That is not a decision anyone should take lightly, especially the co-signer. They are agreeing to pay for the car in case you cant, so they need to have the financial ability to do that (on top of their other current debts).

I dont see how you are getting financed by anyone otherwise, since you have no income. If you dont have anyone who can do that for you (or who is willing), then you will have to wait till you have verifiable income.

On the "wait till someone is willing" statement..... For my daughters car, I was more willing to buy the car and make payments on it myself than I was to co-sign on a loan for it. She asked me to co-sign on the loan, and my wife and I decided we would buy the car and make it a "graduation / congratulations on your first real job" present. I love and trust my daughter, but also do not believe in mixing family and debt, as that can cause "irreconcilable differences", should something go wrong.

TL ; DR

You will need a co-signer on your loan, or you will need to wait till you have income from your job, unless you have a lot of money currently in the bank.
This makes sense, thank you. And I assume by “a lot of money in the bank” you mean something like the price of the vehicle as a minimum perhaps?
 

jjrandorin

Moderator, Model 3, Tesla Energy Forums
Moderator
Nov 28, 2018
14,190
17,914
Riverside Co. CA
This makes sense, thank you. And I assume by “a lot of money in the bank” you mean something like the price of the vehicle as a minimum perhaps?

I am not in the finance world (but do know a decent amount about credit, etc having looked into all this to teach myself some basics), so I cant tell you "how much" money you would need. My guess is, you would need to put down enough down payment that if you defaulted the bank would not be looking at being upside down in the car.

They still want to see income, however. You may have a job offer, but you havent started yet and gotten a paycheck. Things change all the time, so "I will have a job" doesnt fly with anyone, unless its a signed offer letter of employent on XXX date, with YYY salary or something.

If you were willing to put down 30% down, and showed bank statements that you had the balance of the cost of the vehicle in the bank, that would probably do it.

Your much easier path is co-signing or waiting till you get the job.
 

jjrandorin

Moderator, Model 3, Tesla Energy Forums
Moderator
Nov 28, 2018
14,190
17,914
Riverside Co. CA
The offer is exactly that. I have start date and salary confirmed.

Then perhaps it might work.... but if I were you, I would actually go to the bank that I currently banked at and apply there first while talking to a loan officer, since you are now sort of outside of the normal "online" application parameters.
 
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